|
Report Date : |
20.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
DTZ-OZGEOPVT. LTD. |
|
|
|
|
Registered Office : |
14168 Griffin Road, Gunhill Harare |
|
|
|
|
Country : |
Zimbabwe |
|
|
|
|
Date of Incorporation : |
01.01.1994 |
|
|
|
|
Legal Form : |
Company limited by shares |
|
|
|
|
Line of Business : |
The company is engaged in diamond and gold mining. |
|
|
|
|
No. of Employees : |
450 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
No Complaints |
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Zimbabwe |
D |
D |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
ZIMBABWE - ECONOMIC
OVERVIEW
Zimbabwe''s economy is growing despite continuing political uncertainty.
Following a decade of contraction from 1998 to 2008, Zimbabwe''s economy
recorded real growth of more than 9% per year in 2010-11, before slowing to 5%
in 2012, due in part to a poor harvest and low diamond revenues. However, the
government of Zimbabwe still faces a number of difficult economic problems,
including infrastructure and regulatory deficiencies, ongoing indigenization
pressure, policy uncertainty, a large external debt burden, and insufficient
formal employment. Zimbabwe''s 1998-2002 involvement in the war in the
Democratic Republic of the Congo drained hundreds of millions of dollars from
the economy. The government''s subsequent land reform program, characterized by
chaos and violence, badly damaged the commercial farming sector, the
traditional source of exports and foreign exchange and the provider of 400,000
jobs, turning Zimbabwe into a net importer of food products. Until early 2009,
the Reserve Bank of Zimbabwe routinely printed money to fund the budget
deficit, causing hyperinflation. Dollarization in early 2009 - which allowed
currencies such as the Botswana pula, the South Africa rand, and the US dollar
to be used locally - ended hyperinflation and reduced inflation to about 10%,
but exposed structural weaknesses that continue to inhibit broad-based growth.
Source
: CIA
DTZ-OzgeoPvt.
Ltd.
ADDRESSES:
Main Address: 14168 Griffin Road, Gunhill
Zip code/City: Harare, Zimbabwe
Telephone: +263
4 745949
+263
4 2916976
Fax: +263
4 745964
Web site: http://www.dtzozgeo.co.zw
E-mail: info@dtzozgeo.co.zw
Profile
Established: 1994
Line of Business: Quarrying and raw material processing
Industry Division: Manufacturing
Industry-code (NACE): 0729 Mining of other
non-ferrous metal ores
0899
Other mining and quarrying n.e.c.
0510
Mining of hard coal
Banks: unknown
Employees: 450
CNPJ: -
Board of
Directors:
General Director Ismail
Shillaev, Origin: Russia
Director Wellington Chando, Origin: Zimbabwe
Public
information:
-
Legal form: Company
limited by shares
Incorporation date: 01.01.1994
Balance sheet filing date: -
Tax Contributor Number (CNPJ): -
Legal status: active
Entry Deleted Name
active DTZ-OzgeoPvt. Ltd.
Entry Deleted Address
active 14168 Griffin Road, Gunhill, Harare,
Zimbabwe/ZW
Import and
Export:
Import,
Export
Payment
history:
No
complaints on record.
Owners/-s:
Class: 50%
Name: Development
Trust of Zimbabwe
City/Country: Harare, Zimbabwe/ZW
Interest: 50,00%
voting right, 50,00% capital interest
Class: 50%
Name: OzgeoOoo
City/Country: Moscow, Russia/RU
Interest: 50,00%
voting right, 50,00% capital interest
Financial
information:
There
are no accounts available, and the company does not disclose any financial
details.
As
per press reports of September 2012 the company wins some 1.000 carats of
diamonds monthly, which is aa four-fold increase over its rate of production of
earlier in 2012. According to the general manager, Mr.Shilaev, some of the
diamonds have fetched a per-carat market price of $120, according to Rough and
Polished.
The
overall concession is thought to contain approximately 80,000 carats in total.
Apart
from this diamond mining does the company also engaged in gold mining.
Exchange
rate:
US$ 1,00 = ZWD
373 - Official rate on 19.06.2013
Main
Activities:
The
company is engaged in diamond and gold mining.
Operations
& branches:
At
the 14168 Griffin Road, Gunhill, Harare we find the registered seat of business
and headquarters.
The
mining operations for gold take place in the Mutare region. Correspondence address
is:
P.O.
Box 1631 Mutare
Phone/fax
number : +263 20 22209
The
diamond activities take place in the Chimanimani area.
Staff:
450
Company's
Background:
The
company was established in 1994 by initiative of the then Vice President Dr.
Joshua Nkomo in order to guarantee the active participation of state in the
development and exploration of natural resources. It concerns here a joint
venture between DTZ (The Development Trust of Zimbabwe) and Ozego OOO of
Russia.
Even
though full registration details and financials are not available, we have
little reason to doubt the creditworthyness of the business, considering the
various grants they hold and the ties to the Government.
News
As
per press reports of September 2012:
In
2007 subject matter was granted a Special Grant for gold mining in the
Charleswood Farm, to which a diamond permit was added in 2008. In April 2011
exploration started, which led to the discovery of diamond deposits in
Chimanimani district in the summer of 2012.
==
There
are several press reports about environmental damage caused by the activities
of subject matter and of displacement of local residents.
The
company has also been often in the news with reports on their charitable
activities. In March 2013 it was reported that the company will adopt the
Robert
Mugabe Orphanage at St Augustine’s Mission School in Penhalonga. At the same
time they will also start the construction of several buildings for the
orphanage. A total sum of around USD 800.000,- is said to be available for this
initiative.
DIAMOND INDUSTRY – INDIA
-
From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
-
The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
-
Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small,
nimble and quick to react, information as a source of advantage and
philanthropy.
-
Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
-
Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising restraint while following prudent
risk management norms when lending money to gems and jewellery sector. This
follows the implementation of Basel III accord – a global voluntary regulatory
standard on bank capital adequacy, stress testing and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.74 |
|
|
1 |
Rs.91.99 |
|
Euro |
1 |
Rs.78.70 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.